Solar Itc Phase Out Schedule

The itc applies to both residential and commercial systems and there is no cap on its value.

Solar itc phase out schedule.

Here s a quick example of the difference in credits in 2019 and 2020 for a 9 kw solar array at an average cost of 27 000. Congress agreed on a bill that extends the solar investment tax credit itc by five additional years as part of a 1 15 trillion spending bill. Economy in the. 31 2016 and instead stepped down from 30 to 10 until 2024.

Since the investment tax credit is applied to your solar array s gross system cost the amount you receive is dependent on the amount of solar you re purchasing. The federal solar tax credit also known as the investment tax credit itc allows you to deduct 26 percent of the cost of installing a solar energy system from your federal taxes. His company s research has shown that the itc s phase out schedule is expected to remain intact. Bigger system bigger credit.

The itc and ptc extension dates back to 2015. Since the itc was enacted in 2006 the u s. Projects that start. As summarized by research firm ihs key details of the extension include.

The solar investment tax credit itc is one of the most important federal policy mechanisms to support the growth of solar energy in the united states. In december 2015 congress enacted a five year extension of renewable energy tax credits for solar and other renewable energy technologies as part of an omnibus spending bill. As a result of these enacted changes the itc phase out schedule for the different types of energy property is as follows.